Example: Setting Up a Wage Attachment Rule at the Employee DBA Level

This example illustrates when you might set up wage attachment rules at the employee DBA level to comply with differing regulations in multiple areas:

State A regulations specify that commercial garnishments cannot exceed 25 percent of an employee's disposable earnings. This rule should calculate for all employees who have a garnishment in state A.

State B regulations specify that commercial garnishments cannot exceed more than 250 USD of an employee's disposable earnings. This rule should calculate for all employees who have a commercial garnishment in state B.

The organization uses DBA 1130 for all commercial garnishments. Because the regulations for each of the states are different, you cannot set up a rule at the DBA level for DBA 1130 that ensures that all regulations are met. Therefore, you must assign a rule to each employee who has a garnishment that uses DBA 1130 to ensure that each of the employee's total withholdings do not exceed the maximum amount that is specified by the state that is associated with the garnishment.

For example, employees in the organization have these garnishments:

  • Employee Jane Doe has a commercial garnishment that is set up using DBA 1130, and is associated with state A.

  • Employee Robert Smith has a commercial garnishment that is set up using DBA 1130, and is associated with state B.

    Because the legislation governing the withholding limits for these garnishments is different, and because these garnishments use the same DBA number, you must set up rules at the employee DBA level.

    To comply with the regulations for state A, you can set up this rule, and attach it to Jane Doe:

    Parameter

    Description

    Rule Level

    Employee DBA Level

    PDBA Code

    1130

    Withholding Rule

    3 (Maximum Wage Amounts Withheld as Percentage of Disposable Wages)

    Amount or Rate

    25

    Source of Calculation

    3

    To comply with the regulations for state B, you can set up this rule, and attach it to Robert Smith:

    Parameter

    Description

    Rule Level

    Employee DBA Level

    PDBA Code

    1130

    Withholding Rule

    4 (Maximum Wage Amount Withheld as a Dollar Amount)

    Amount or Rate

    250

    Source of Calculation

    3